To Save or to Splurge? Common Sense Spending and Saving Options for Empty Nesters

The kids are gone and your nest is empty. Now that you’re no longer financially responsible for your children, you may find yourself with a bit of extra money (and time) on your hands. Before you go on a shopping spree, splurge on a night on the town or take your dream vacation, make sure you save. That means contributing more to your savings accounts before increasing your spending budget. Fill your empty nest with good times, prosperity and personal development by balancing your spending habits with these unexpected ways to save. 

When to save?

Downsize your nest. There are dozens of unexpected ways to save for empty nesters. However, a more traditional approach is downsizing your living situation. According to the AARP Public Policy Institute, in 2009, 29 percent of U.S. households with occupants above the age of 50 spent more than 30 percent of their income on housing. That’s an increase of 20 percent since 2000. Don’t bog yourself down by paying for and maintaining a large home; consider downsizing to a smaller house, condo or apartment for more manageable mortgage payments and savings on utility costs, home maintenance and property taxes. That means more money to spend – or better yet, invest in your saving accounts.

Buy fewer groceries and clothes. Fewer people at home means fewer mouths to feed and bodies to clothe. So, skip the epic shopping trips to Costco and the Mall to cut back on your grocery bill. Remember, you’ll be cooking for just one or two now, not your kids and the entire soccer team. And you don’t have to handle back-to-school wardrobes any longer, so take that budget and put it directly into savings accounts.

Unexpected ways to save. Look into discount programs like frequent flyer, hotel rewards and credit card points, as well as social couponing to save. You can also consider consolidating to one car, reducing the number of cable channels you subscribe to and eliminating a home phone in favor of cell phones to save a little more. Try to contribute these savings to an account monthly or even weekly to avoid spending them.

Contribute more to your retirement saving accounts. Now that you don’t have to feed, clothe and house your children, take the money saved from these reduced expenditures and contribute to your retirement fund savings options. By putting away more money into one of your retirement savings accounts, like a 401(k), IRA or other high-interest savings account , you'll not only reach your retirement saving goals, but you might even be able to reach them faster. 

When to spend?

Pay off your debt. Reducing debt is almost as important as saving for retirement. So, after you cut down costs and increase your cash flow, come up with a debt reduction plan that works for your budget. The more quickly you get out of debt, the less interest you will pay over time. And that means more money to spend enjoying the rest of your life.

Take on a new hobby. You've probably spent the last twenty years or more working and/or chasing around your kids. Now that they’re grown, you have more time to invest in your personal development. Check out your local community college’s continuing education classes to learn to use your new digital SLR or brush up on your French for your upcoming trip to Paris. Classes are usually inexpensive and available at night and on weekends. Whether you’re going back to school, gardening, learning to paint, practicing yoga or taking a culinary course, spending your newfound money and time cultivating your passions is a wise investment in your future. Who knows, you may even be able to sell some of your art online or at a local show and contribute to your savings account!

Embark on an adventure. One of the most popular (and rewarding) ways empty nesters spend their money is on vacations. Taking a holiday has the power to reinvigorate your mind and body and expose you to new cultures. Plus, now that you don’t have to worry about the kids, you can take your vacation anywhere you like – and spend more money on pricier destinations, luxury hotels, fine dining, and once-in-a-lifetime activities. However, you may choose to save on accommodations and splurge on activities by staying at a B&B, or rent a cottage in the woods one year so you can go with the whole family to Aspen the next. There are always little ways to save and still enjoy your vacation. 

Celebrate your independence

Don't be shy about hitting a night on the town, taking a spa day, having dinner at your favorite restaurant or attending a glamorous opera. You don’t have to worry about a babysitter or a curfew, and with your savings built up, it’s OK to splurge. So, spend a little time (and money) enjoying yourself and your newly discovered “me” time. Of course, if you can find discount nights, coupons, or tickets that support your favorite charity it’s even better!

Sponsored content was created and provided by RBS Citizens Financial Group.

Are Baby Boomers Fueling The Auto Industry?

This past decade has been an especially tough one for the automotive industry. Now, as the American economy is recovering, auto makers are finding that baby boomers are responsible for a very large chunk of their business. According to research from the University of Michigan’s Transportation Research Institute, consumers aged 55 – 64 were responsible for 23 percent of all new car purchases, which those aged 45 – 54 made up 26 percent of the sales.

These figures aren’t just coincidence – there are a number of factors in play which are causing this generation to be such good customers. Here are three reasons that potentially help explain why so much of the automotive market is filled by baby boomers:

1. The Sheer Number Of Baby Boomers

The first reason that it makes sense for such a high proportion of purchases to be made by baby boomers is that there are so many of them. According to studies on the subject, there are well over 70 million baby boomers in the United States. They make up the second largest age demographic in the United States, following millennials born after the year 2000. This provides a foundation for the other potential explanations to even further push baby boomers into the position of top consumers in the automotive market.

2. Financing Is Available For This Generation

For older adults such as baby boomers, financing is often much more available than it is for the younger generations. This is due to the fact that a much larger percentage of baby boomers are financially secure than their less-aged counterparts. Not only have they generally advanced into higher-paying jobs in their careers, but they likely have many more assets stashed away for retirement. The type of loan security that comes along with many baby boomers makes lenders much more likely to approve them for loans with favorable terms. On the other hand, many members of younger generations are feeling the effects of the recent recession more strongly and face greater challenges in obtaining funding for their automotive purchases.

3. They May Be More Optimistic About The Future

To put it simple, this isn’t the first trip around the sun for baby boomers. Despite the economic recovery we’ve seen over the past few years, the younger generations still seems more hesitant about making major purchases than baby boomers are. While many members of generation Y were unsure whether the economy would ever be the same, baby boomers had already been through their fair share of economic downturns. From recessions in the 1970’s and 80’s to the dot-com bust early last decade, they have seen ups and downs and understand that the economy will always be cyclical.

One thing is for sure – baby boomers are one of the biggest factors aiding the recovery of the nation’s automotive industry. Despite the proven statistics, many automobile companies are still targeting their advertisements towards a younger generation X and generation Y crowd. As a growing number of these companies begin to understand the importance of baby boomers in their industry, we are starting to see a shift in focus in order to increase their market share among the nation’s largest demographic. Thanks to the sheer size of the baby boomers, the financial security that they possess and their outlooks on the future of the economy, this generation represents a crucial market segment to automakers.

David Lye is the founder of fincar.com.au. He has always been passionate about cars, finances, businesses and enjoys sharing tips with others.

9 Good Reasons Why 50+ Entrepreneurship is in the Cards For You

If you're in your 50s or even older, you may think that you don't have what it takes to start a business. This isn't the case at all. In fact, in some instances you may be in a better position to be an entrepreneur. Whether you succeed or not is never guaranteed, of course, but there's a good chance that you're going to be able to reach all your goals. Keep reading for some specific ways you will have an easier time of starting a new company.

50+ Entrepreneurship Makes Sense

Here's a look at nine different ways that entrepreneurship makes sense for those who are 50 years of age or older.

1. More Experience - Because you've lived longer, you're going to have more life experience, which is really worth something in the modern world. Your 50s are one of the best times to start a business if you want to avoid mistakes. 
2. More Resources - Being in your 50s or older, there's also a good chance you're going to have more financial resources available to you. Whether this is through savings or some other means, this can make or break a new company. 
3. Bigger Network - Let's not forget a large network of people - which is really useful as well. This can really be useful in a lot of different ways if you're thinking of starting a company. 
4. Personal Support - You're also likely to have more family support if you're in your 50s. If you have children there's a good chance they're going to be grown and in college, which means you have less responsibilities and can concentrate on a business. 
5. Help Available - Additionally, the current job market should be taken into consideration. For example, a lot of recent graduates are trying hard to get a job and looking for good work. Now is a great time to hire fresh faces out of college. 
6. Government Assistance - You may also be eligible to get assistance from the government because of your age. You'll have to check local and state places for this information, but it's not hard to do. 
7. Internet Expansion - The Internet is growing all the time. Now's a great time for people of any age group to start their own business, but people in their 50s have an even better chance to tap into this evolving market. 
8. More Courage - This isn't going to be true for everyone, but there's a good chance that if you've made it to your 50s, you have quite a bit of courage that you can use to overcome obstacles. 
9. More Time - Last but not least, in your 50s there's a good chance you're going to have a lot more time to start a business.

Do you have any other tips for starting a business in your 50s? If so, leave a comment below and let us know. We love to hear from our "slightly older" readers!

Written by: Sara Xiang likes to purchase frozen rabbits online because it's easiest to feed her reptiles that way. When not working on other things, she likes to write articles to market with content online.

How Car Financing Works

When financing a car you will most definitely need the cash to do so! However, there are a lot of people who don’t have the cash needed in hand to finance a car. With that being said, you will need to apply for a loan so that you will have the money to put down on the car. Now, there are various different car loans that are available to apply for. The car loan that you choose or that you are able to get approved for will depend upon your personal situation. 

How the finance process works

The applications for car loan financing are typically the same with few differences depending on the institute that you apply with.

You will first need to fill out the application. In most cases nowadays, people do this online. You will need to add some details about your finances, such as your monthly income, rent/mortgage payments, etc. All of this is needed to determine whether you qualify for the finance loan. Some documents will also be required of you in order for you to be considered for the loan. You will need to provide a driver’s license that is valid and up to date, bank statements, and proof of where you reside at will also be required to present to the institute.

After you have provided all that is needed you will need to wait a couple of days in order for the application to process so that you will know whether or not you have been approved.

Options for financing

The bank is who most people go through when they want to finance a vehicle. You don’t have to go directly to the bank, there is also the option of having the dealership do all of the financing for you.

The repo rate that is posted for the vehicle that you buy will determine what your interest rate will be. Your credit score and how long you will be paying on the loan will also have a lot to do in determining the interest rate that you will be paying. The interest is basically the percentage that the bank adds to your monthly repo rate so that they will earn revenue off of your payments for the car. Good credit will allow you to have the benefit of getting a prime or minus prime. All banks have their own personal interest rates and loan periods, so it is would be wise to choose the bank that you know will be cheapest and most convenient for you with financing.

Leasing instead of financing

Another option that you can go with if you decide that you want an easier route of obtaining a vehicle is leasing one. Even though you would own your vehicle through financing it, it would be much easier and cheaper with monthly payments to lease a vehicle. If you want to learn more about vehicle leasing you can check out some options here at this link by clicking here. Compare the low leasing rates to how much you’d pay to financing a vehicle.

5 Ways to Destroy your Credit Rating

Loans (Photo credit: zingbot)

A credit rating is a tool used by banks to determine whether to loan money to you or not. Your credit rating is calculated based on your credit history, which is contained on your credit file. Your will have a credit file if you have applied for anything involving credit in the past such as: credit cards, mobile phone or internet plans, personal loans, mortgages or interest-free store loans. In order to keep your credit rating high, to increase the likelihood of loans you should avoid these five things.

Credit Defaults

Credit defaults occur when payments for loaned money are not payed back on time or at all. The most commonly credit defaults are: missed mobile phone bills, missed credit card payments, and missed personal loan payments. All missed payments are listed as defaults on your credit file and result in a lower credit rating.

Self-Employment

Unfortunately, people who are self-employed can have a hard time winning favour with banks and other money lending organisations. This is due to the fact self-employment is viewed by these organisations as unstable and risky. If you are self-employed it is important that you keep track of your tax returns and profit-and-loss statements, so when the time comes you can prove that you have sufficient income to make payments.

Discharged Bankruptcy

Discharged bankruptcy is the term used to describe an individual after they have paid off, otherwise settled, all previous debt. After settlement has been agreed upon, the bankrupt individual should then apply for a discharge certificate ordained by the court to prove their freedom from bankruptcy. Technically, a person who is classified as having a discharged bankruptcy, is allowed to take out loans again, very few institutions will take the risk for several years after the bankruptcy.

Being on a Debt Agreement

A debt agreement is legally binding agreement between a debtor (the loaner) and their creditors. In this agreement, creditors will accept a sum of money, which the debtor can afford in order to make up for an unmanageable debt. Proposing a debt agreement is considered an act of bankruptcy and will severely lower your credit rating.

Getting Declined by Banks and Other Creditors

Often an institutions willingness to give loans is influenced by past creditors opinions if the individual in question. If past creditors have deemed the individual to be reliable, then they are more likely to agree to a loan. Alternatively, if past creditors view you as a credit risk, then you are less likely to get a loan in the future, so it’s best to leave a good impression from the start.

Although it is important to avoid doing damage to your credit rating, sometimes it is inevitable. Getting a car loan while you are struggling with a bad credit rating can be difficult, but it’s not impossible. Nowadays there are many options for those searching for bad credit car loans.

Dealing with Debt as a Couple

If you’re currently in a relationship with someone it’s likely that you will have encountered some kind of conversation about money. Depending on how serious your relationship is you may have a joint account, or have agreed with each other about who pays what. If you live together, then conversations about money are a must, as rent/mortgage payments, bills and food costs will all have to be shared fairly. As obvious and as simple as it sounds, it’s not actually that easy to have conversations about money, even with the people you are closest to. It’s for this reason that many couples find themselves in debt, and in some cases one partner has no idea of the extent of it until something goes wrong.

Recent research has shown that women are the most ‘in control’ of the household finances, with 11% more females than males being able to answer correctly when asked the balance of their bank accounts and how much is owed on a credit card. Just 33% of men were able to answer correctly to both of the questions, which is worrying when you consider that 68% of men said that they are in control of the family finances. It seems that communication is not always clear either, as 63% of women said they were the ones controlling the cash.

Gender has no influence when it comes to racking up debt, however, as neither malesnor femalesare discriminated against when it comes to taking on credit. Some couples are struggling under the actions of one of them, whereas others may not yet understand the extent of their partner’s debts. If you’ve found yourself in money troubles, no matter how hard it may be on the other person, you must talk about it. This is especially important where there are joint finances involved, or if you would be at risk of affecting their stability due to owning a home or business together.

Talking through your money issues is not only a good way to hold yourself accountable, but it can also mean you could get some sound advice about how to tackle the problem. Two heads are better than one, and although your partner may feel upset at first, the fact that they know would hopefully prevent you from making it worse by burying your head in the sand. Struggling with problem debt in private can be extremely stressful and may put a strain on your relationship.

According to debt help charity Step Change, 45% of people wait a whole year before seeking help about their money problems. This is a long time to be having issues for, and the stress could take its toll as mental health problems if not kept in check. If you’re struggling with debts, the sooner you can reach out for help the better. This can simply be speaking to your partner or a friend or other family member about it – a problem shared is a problem halved.